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  • Q2 EPS, $0.29; H1 EPS, $0.53.
  • Integration of Globe Motors proceeding well.
  • This is one of the most undervalued industrial tech companies listed in the US.

On November 29, 2013, I wrote an article "Allied Motion Technologies: An Accretive Acquisition Opportunity" stating that the acquisition of Globe Motors is a "strategic fit" acquisition which is accretive right away.

Allied Motion Technologies Inc. (NASDAQ:AMOT) serves the motion control market. It designs and manufactures motor and servo motion products for the aerospace, defense, medical, industrial, and vehicle markets.

Basically, the acquisition of Globe Motors doubled the revenues and EPS of the company.

Allied Motion announced yesterday a net income increase of 229% to $2,693,000, or $0.29 per diluted share, for the second quarter, compared to $819,000, or $0.09 per diluted share, for the second quarter in 2013.

Revenues for the second quarter increased 145% to $62,069,000, compared to $25,352,000 last year, with sales to U.S. customers up 191% and foreign sales up 91%. Cash at June 30, 2014 increased to $10,988,000, compared to $10,171,000 at December 31, 2013.

Bookings were $63.5 million for the second quarter, compared to $23.5 million for the first quarter of 2013. The company's backlog was $80.8 million, compared to $26.9 million for the second quarter 2013, a 201% increase over the prior year.

Allied Motion experienced growth in the medical, vehicle, aerospace, and defense markets, while the industrial and electronics markets were flat.

The company mentions in its press release that the integration process is proceeding well. Next month, it will give an update on the long-term strategy, and will inform investors about the goals and objectives for the next three to five years.

Final Note

Allied Motion is already leveraging the combined market shares of both companies, which translates in increased revenues and bookings.

Looking to the fundamental metrics, earnings per share will be more than $1 this year. From a comparison point of view, the stock price has still 70% upside potential.

Allied Motion is one of the most undervalued industrial tech companies listed in the U.S. This stock can offer investors huge rewards going forward.

Disclosure: The author is long AMOT. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Source: Update: Allied Motion Technologies Earnings